https://www.myjoyonline.com/world-bank-lauds-ghanas-progress-toward-economic-recovery-but-warns-of-ongoing-challenges/-------https://www.myjoyonline.com/world-bank-lauds-ghanas-progress-toward-economic-recovery-but-warns-of-ongoing-challenges/
Robert Taliercio O'Brien

Ghana has made notable strides toward macroeconomic stabilisation, with significant improvements in key areas such as inflation, debt restructuring, and fiscal consolidation, according to the World Bank Country Director.

Robert Taliercio O'Brien said that despite this development, the nation still has considerable work to do to fully recover.

In an interview on Joy News' PM Express on Thursday, he highlighted government's efforts to bring inflation under control.

"Inflation has been reduced, so it's on a declining path, and it needs to keep declining. It's still too high, but good progress is being made, thanks in part to the policy position of the government," he noted.

One of the critical areas of reform that the World Bank is optimistic about is debt restructuring.

"Ghana implemented the domestic debt restructuring in 2023 and reached an agreement under the G20 Common Framework with its official creditors," Robert O'Brien stated.

He stressed the importance of this development, explaining that a Memorandum of Understanding on restructuring the official bilateral debt was achieved and is currently in progress.

"As of June of this year, the government announced an agreement in principle with the commercial bondholders, which is the third piece of the debt restructuring program. So again, very good progress, but more to do," he added.

The World Bank official also commended government's fiscal consolidation efforts, which have led to a significant reduction in public spending.

"We saw very important measures taken by the government to reduce expenditures last year, which resulted in a 7.9 percentage point decrease in spending," he said, describing it as "a very significant effort" to get fiscal management back on track.

Despite the achievements, the World Bank cautioned that Ghana's economic recovery is not yet complete.

"There's more to do," the official reiterated, urging continued focus on sustaining the progress made so far while addressing the remaining challenges.

The interview underscores both the achievements and the ongoing challenges Ghana faces as it navigates its way toward economic stability.

The World Bank's positive assessment serves as an endorsement of government's efforts, but also a reminder that the journey to full recovery is far from over.

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